What Millennials Need to Know About Insurance

You’re young and in good health — do you still need insurance? The answer is yes, but, as Money magazine recently reported, about 25 percent of people between the ages of 18 and 29, the so-called “millennial” generation, are going without. If you’re among that 25 percent, it’s a good idea to learn more about your insurance options, from health to life insurance and from auto to renter’s insurance and to purchase policies that best meet your needs.

Health Insurance

Depending on your situation, you might have a few options when it comes to health insurance. If the Affordable Care Act stays in place, you might still be eligible to be covered under your parents’ insurance policy, if you are under age 26. Your parents’ policy can cover you, even if you are married. After age 26, you can purchase a health insurance policy on the exchange or purchase an individual policy directly from an insurance company.

There are several different levels of insurance, from catastrophic plans that cost the least each month but also offer the least amount of coverage to “gold” plans, which cost the most in terms of premiums, but provide the most coverage in return. While it’s generally accepted that young, healthy people can save money by getting a lower tier plan, a study conducted by Bankrate found that nearly half of the 18 to 29-year-olds surveyed preferred plans with high premiums and a great amount of coverage, even if they didn’t need that much coverage.

Life Insurance

Death might be far from your mind when you’re under 30, but that doesn’t mean you should rule out life insurance. If you are married, have children, or have any type of debt that someone else would be responsible for if you were to die, life insurance is a must-have. Luckily, life insurance plans for younger people tend to be the least expensive, since the odds of living are in your favor. Look for a policy that would cover your debt or that would sufficiently provide for your spouse or kids in case something happens to you.

Car, Home or Renter’s Insurance

If you don’t own a car and haven’t rushed out to buy a house yet, and you’re under 30, you’re not alone. In March 2014, Fast Co. Exist reported that the number of cars bought by people between the ages of 18 and 34 fell by 30 percent between 2007 and 2011. Even if you don’t own a car, a non-owner car insurance policy might be worth having, especially if you occasionally borrow or rent a car. Renter’s insurance is also a good idea, if you have yet to purchase your own home. A renter’s insurance policy can protect your stuff, in case someone breaks into your apartment, and can protect you, in case someone is injured while visiting your home.

You might feel like nothing can get you down when you’re young, but all it takes is one accident or mishap for you to learn the value of having good insurance. Look for policies that provide enough coverage for your needs while fitting in with your budget.

The information in this article was obtained from various sources. This content is offered for educational purposes only and does not represent contractual agreements, nor is it intended to replace manuals or instructions provided by the manufacturer or the advice of a qualified professional. The definitions, terms and coverage in a given policy may be different than those suggested here and the language contained therein will govern such policy. No warranty or appropriateness for a specific purpose is expressed or implied.